Danish beer giant Carlsberg announces increase in prices

Danish brewer Carlsberg warned Friday that it will raise beer prices this year to offset rising costs of ingredients after posting a net profit exceeding pre-pandemic levels in 2021.

Carlsberg is set to raise prices in 2022 as the beer giant's costs increase.
Carlsberg is set to raise prices in 2022 as the beer giant's costs increase. File photo: Henning Bagger/Ritzau Scanpix

The world’s fourth biggest beer producer acknowledged that the higher prices could have a “negative impact” on consumption.

“The significantly higher input costs and continued impact from COVID-19 will pose challenges in 2022, but we’re well prepared,” chief executive Cees ‘t Hart said in a statement.

Prices of raw materials for a slew of industries have risen across the world as supply struggled to keep up with demand as economies recovered from the pandemic last year.

In 2021, Carlsberg’s net profit attributable to shareholders rose by 13 percent to 6.8 billion kroner (914 million euros), even though bars and restaurants closed on a number of its markets, performing better in 2019 and 2020.

Sales increased by 14 percent to 66.6 billion kroner while the number of drinks sold rose by eight percent despite a seven percent decline in western Europe.

“We’re very satisfied with the Group’s 2021 performance. Although our business was significantly impacted by Covid-19, we delivered strong top- and bottom-line growth and free cash flow,” Hart said.

For 2022, Carlsberg forecast a limited increase in operating profit of between zero and seven percent because of rising costs and the continuing effects of the coronavirus pandemic.

READ ALSO: Carlsberg cans plastic rings to cut waste

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Denmark’s Lego builds around inflation to post profit

Lego, the world's number one toymaker, said Tuesday that its revenue and profits rose last year as demand for its plastic bricks remained strong despite inflationary headwinds.

Denmark's Lego builds around inflation to post profit

For 2022, net profit at the Danish firm rose four percent to 13.8 billion kroner ($1.98 billion) while sales jumped 17 percent to 64.6 billion kroner.

“These results were delivered despite extraordinary inflationary pressures on materials, freight and energy costs,” the company said in a statement.

Excluding currency effects, the sales gain was 11 percent. The privately-held company did not provide unit sales.

The firm, in which the holding company of Denmark’s Kirkbi family owns 75 percent with the rest being held by the Lego Foundation, said sales improved
in all markets and its market share grew globally.

“The company expects single digit revenue growth in 2023, ahead of the global toy market and will continue to accelerate investments in strategic
initiatives,” it said.

The company has seen continued success in the last two years even after no longer enjoying a boost from lockdowns keeping people at home, so far
withstanding pressure from inflation and slowing economies.

It has been buoyed both by sets based on franchises such as Star Wars and Harry Potter as well as home-grown hits like Lego Friends and Lego Technic.

Lego, which has completely withdrawn from Russia following Moscow’s invasion of Ukraine, has continued its strategy of opening more stores, with
155 new shops opened during the year, bringing the number of shops worldwide to 904.

The company, which employs some 27,000 people, has also been making major investments to reduce the climate impact of its products and operations,
including by manufacturing closer to consumers.

The group has just opened a carbon-neutral factory in Vietnam, joining already established ones in Hungary, the Czech Republic, Mexico, China and
Denmark. A new factory is also being constructed in the United States.

READ ALSO: Lego launches bricks with Braille